Global Crossing Announces Intent to Examine Strategic Options Concerning Incumbent Local Exchange Carrier - ILEC - Business - Company Business and Marketing

Cambridge Telcom Report, May 8, 2000

Global Crossing Ltd. (Nasdaq:GBLX), which is building and offering services over the world's most extensive global IP-based fiber optic network, Monday announced that it has retained Chase Securities, Inc. and Merrill Lynch & Co. to assist it in examining its strategic options concerning its incumbent local exchange carrier ("ILEC") business, acquired as part of its acquisition of Frontier Corporation last fall. The Global Crossing ILEC, which comprises approximately 1,080,000 access lines, is the 10th largest ILEC group in the United States. Approximately half of its operations are in the Rochester, New York area, with the remainder in 13 states, including notably New York, Minnesota, Iowa, Wisconsin, and Pennsylvania.

"The ILEC business is a good business with stable cash flows and attractive margins," said Leo Hindery, Jr., Chief Executive Officer of Global Crossing. "We have been contacted by a number of parties expressing interest in purchasing some or all of these companies. We will examine whether we should engage in any transaction regarding our ILEC. If we were to do so, we would redeploy our capital toward higher growth opportunities Global Crossing is pursuing, such as further expansion of our global network, sales and product reach, and GlobalCenter."

Global Crossing Ltd. (Nasdaq:GBLX) is building and offering services over the world's most extensive global IP-based fiber optic network, which will have more than 101,000 route miles, serving five continents, 27 countries and more than 200 major cities. Global Crossing's subsidiary, GlobalCenter Inc., is a leading Internet service business, and its customers include many of the largest and most densely trafficked sites on the Web. Asia Global Crossing, a joint venture among Global Crossing, Microsoft Corporation (Nasdaq:MSFT), and Softbank Corp. (Tokyo Stock Exchange: 9984), is building the first pan-Asian broadband IP network to provide broadband and Internet services to the Asia Pacific region. Global Crossing's operations are headquartered in Hamilton, Bermuda, with principal offices in Los Angeles, California; London, England; Morristown, New Jersey; Rochester, New York; and Miami, Florida. Visit Global Crossing at www.globalcrossing.com on the Web.